Lawmakers propose introducing zero VAT for milk supplies in Ukraine
A group of people's deputies has proposed that a zero VAT rate, instead of current 20%, is set for supplies of milk and cream (uncondensed without sugar) in Ukraine.
Bill No. 8282 amending the Tax Code of Ukraine was registered in parliament on April 18. Its authors are 19 lawmakers from various parliamentary factions.
According to an explanatory note to the bill, a reduction in the incomes of livestock enterprises with a simultaneous increase in the tax burden on them leads to a decrease in the number of cattle, production, further reduction in consumption and production of dairy products.
According to the document, at the end of the first quarter of 2018 the average market price for "extra" milk was UAH 9.56 per kg (including VAT). In general, the range varies between UAH 8.76-9.80 per kg. The price for premium milk is UAH 8-9.50 per kg and the first grade - an average of UAH 8.84 per kg.
The authors of the bill expect that the adoption of the bill will have a positive effect on producers, will help reduce the difference in procurement prices for milk among agricultural enterprises that pay VAT, representatives of small agricultural business and households, and reduce the financial burden on the consumer.